Iceland plans Feb 20 for Icesave vote -draft bill

REYKJAVIK, Jan 6 (Reuters) – Iceland’s government is proposing a national referendum be held on Feb. 20 on a bill to repay Britain and the Netherlands more than $5 billion their savers lost when Icelandic banks collapsed, according to a draft bill seen by Reuters on Wednesday.

Iceland’s parliament had approved a repayment bill late last year, but Icelandic President Olafur Grimsson said on Tuesday he would not sign the bill into law.

The rejection means Iceland must hold a referendum, according to the country’s constitution.